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QUESTION 37 On September 1, 2018. Vernon Corporation acquired Barlow Enterprises for a cash payment of $320,000. At the time of purchases. Barlow's balance sheet
QUESTION 37 On September 1, 2018. Vernon Corporation acquired Barlow Enterprises for a cash payment of $320,000. At the time of purchases. Barlow's balance sheet showed assets of 5610.000. liabilities of $240,000, and owner's equity of 5420.000. The fair value of Barlow's assets is estimated to be 5970,000. The liabilities are all estimated to be at fair value. a) Compute the amount of goodwill acquired by Vernon. 120000 b) on December 31, 2020, the fair value of Barlow as a reporting unit is estimated to be 5720.000. The carrying value of Vernon's investment in Barlow at year-end is $750,000. The fair value of Barlow's identifiable net asset excluding the goodwill. is determined to be 55.000 Prepare Vernon's journal entry, if necessary, to record impairment of goodwill. Please use the nen standard (Hint: The FASA's new good Impairment testing guidance - ASU 2017-04 is required for public SEC filers for periods beginning after December 15, 2019). Note: Please use integer only. Do not use a S. Use commas in numbers: 3.000 not 3000
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